Lydia Lariba Bawa with Bode Oseni (second left) and some officials at the launch
Regency Alliance Insurance Limited and NEM Insurance Ghana Limited have merged to meet the new capital requirement for insurance companies in the country.
They are the first local insurance companies to merge in Ghana following the revision of the minimum capital requirement by the National Insurance Commission (NIC).
Direct insurance companies are expected to increase their capital to GH¢15 million while Re-Insurance companies are to recapitalize to GH¢40 million.
About 43 companies have so far met the requirement, with eight others undertaking various strategies to avert the revocation of their licences.
Bode Oseni, Managing Director of Regency Nem Insurance, in his remarks, said the combination of our resources have strengthened us, and we are setting out to deliver new standards for excellence in the industry.”
He said, “We are more than ever committed to providing superior service experience to delight our numerous clients and customers.”
Mr Oseni expressed appreciation to the Insurance Commission for providing an enabling environment for the merger to take place.
He assured all stakeholders of their commitment to building a strong and formidable insurance company.
Lydia Lariba Bawa, Commissioner of Insurance, said the move would propel the companies to undertake large risk ventures.
“For our market, there are over 50 companies and we think that it’s too much for the industry considering the fact that there are even more applications for licences.
“We are looking at having a smaller number who possess stronger capacities so if the companies should come together, they should be able to increase their capacity so they can be able to absorb major risks,” she added.
By Cephas Larbi